5 FP (ended December 2019)th

Presentation Materials
Canadian Solar Infrastructure Fund, Inc.
Security code

Asset Manager
Canadian Solar Asset management K.K.

S-21 CS Izu-shi Power Plant

Table of Contents
1. Financial Highlights ・・・ 2
Financial Highlights of 5th FP ・・・・・・・・
Portfolio Performance・・・・・・・・・・・・

3. Management Policy ・・・ 21

46th, 7th & 8th FP Business Forecast ・・・・・・ 22
Historical and Forecasted Dividend・・・・・・ 23External Growth Strategy (Sponsor Pipeline) ・ 24

of Portfolio and Debt・・・・・・・ 7

Appendix・・・・・・・・・ 25

3

2. Major Topics for 5 th FP/Summary
Newly Acquired Assets in 5th FP・・・・・・・ 8
AUM Snapshot・・・・・・・・・・・・・・・・ 9
Portfolio・・・・・・・・・・・・・・・・・・・ 10
Asset List (1) ・・・・・・・・・・・・・・・・ 11
Asset List (2) ・・・・・・・・・・・・・・・・ 12
Credit Rating and the 1st Investment
Corporation Bond ・・・・・・・・・・・・・・ 13
Debt Profile (1) ・・・・・・・・・・・・・・・
Debt Profile (2) ・・・・・・・・・・・・・・・
Green Finance・・・・・・・・・・・・・・・・
Impact of Curtailment by Kyushu ElectricPower (1)・・・・・・・・・・・・・・・・・・
Impact of Curtailment by Kyushu ElectricPower (2)・・・・・・・・・・・・・・・・・・
Recent System Trends・・・・・・・・・・・・
Contribution to ESG ・・・・・・・・・・・・・

14
15
16
17
18
19

Overview of Sponsor ・・・・・・・・・・・・ 26
Vertically-integrated Business Model ・・・・・ 27
Overall Structure ・・・・・・・・・・・・・・ 28
Unit Price
Performance ・・・・・・・・・・・・・・・・ 29
Status of Unitholders ・・・・・・・・・・・・ 30
Balance Sheet for 5th FP ・・・・・・・・・・・ 31
Statement of Income for 5th FP ・・・・・・・ 32
Leasing Structure ・・・・・・・・・・・・・・ 33
Distribution Policy (Payout Ratio)・・・・・・・ 34
Characteristics of PV Plant Revenue ・・・・・ 35
History of CSIF ・・・・・・・・・・・・・・・ 36
Renewable Energy Market in Japan・・・・・・ 37
Disclaimer・・・・・・・・・・・・・・・・・・ 38

20

11. Financial Highlights

2

Financial Highlights of 5 th FP◼ Lower operating revenues than forecast at the beginning of the FP due to lower actual energy
output◼ One-time financial costs incurred related to the acquisition of one power plant from sponsor
pipeline in November 2019 impacted additionally on the net income◼ Utilizing distributions in excess of earnings, ¥3,650 DPU is maintained
4th FP(ended Jun. 2019)

5th FP(ended Dec. 2019)
Forecast@Aug. 13, 2019

ActualRevised Forecast@Nov. 26, 2019

Increase / (Decrease)

Actual(vs. Forecast @Aug. 13, 2019)

Statement of Income Data
(million yen)
Operating revenues

2,185

2,213

2,139

2,088

(125)

Operating income

817

797

738

696

(101)

Income before income taxes

711

671

576

534

(137)

Net income

710

671

575

534

(137)

Distribution per unit
(including distributions in excessof earnings) (yen)

3,650

3,650

3,650

3,650

0

Distributions per unit
(excluding distributions in excessof earnings) (yen)

3,073

2,903

2,491

2,310

(593)

Distributions in excess of earnings
per unit (yen)

577

747

1,159

1,340

593

3

Portfolio Performance◼ 5 th FP actual energy output ÷ 5 th FP projected energy output = 92.51％(Jan.-Dec. 2019 actual ÷ projected＝98.70％）◼ Total energy output(MWh)Projected

Actual

15,00013,062
11,811

11,155

10,85011,147

11,326

10,596

10,000

9,619

8,455

8,372

7,809

6,689

5,000

0

Jul. 19

Aug. 19

Sep. 19

Oct. 19

Nov. 19

Dec. 19◼ Energy output by projectS-01 CS Shibushi-shi
Power Plant

150

(MWh)
150

100

100

50

50

0

S-03 CS Kasama-shi
Power Plant

S-02 CS Isa-shi
Power Plant(MWh)Jul. 19

Aug. 19

Sep. 19

Oct. 19

Nov. 190Dec. 19

S-04 CS Isa-shi Dai-niPower Plant

(MWh)
300

100

100

Aug. 19

Sep. 19

Oct. 19

Nov. 19

Dec. 19

Sep. 19

Oct. 19

Nov. 19

Dec. 19

Jul. 19

Aug. 19

Sep. 19

Oct. 19

Nov. 19

Dec. 19

300
200

Jul. 19

Aug. 19

(MWh)

200

0

Jul. 19

0

4

Portfolio Performance
S-05 CS Yusui-cho
Power Plant

300

(MWh)
300

200

200

100

100

0

S-07 CS Kasama-shi Dai-niPower Plant

S-06 CS Isa-shi Dai-sanPower Plant(MWh)Jul. 19

Aug. 19

Sep. 19

Oct. 19

Nov. 190Dec. 19(MWh)

S-08 CS Hiji-machi
Power Plant

300

Jul. 19

Aug. 19

Sep. 19

Oct. 19

Nov. 19

Dec. 19

Jul. 19

Aug. 19

Sep. 19

Oct. 19

Nov. 19

Dec. 19

Jul. 19

Aug. 19

Sep. 19

Oct. 19

Nov. 19

Dec. 19

Jul. 19

Aug. 19

Sep. 19

Oct. 19

Nov. 19

Dec. 19

Jul. 19

Aug. 19

Sep. 19

Oct. 19

Nov. 19

Dec. 19

(MWh)
400
300

200

200
100
0

S-09 CS Ashikita-machi
Power Plant

100
Jul. 19

Aug. 19

Sep. 19

Oct. 19

Nov. 190Dec. 19(MWh)

S-10 CS Minami Shimabara-shi
Power Plant (East & West)

300

(MWh)
600

200

400

100
0

S-11 CS Minano-machi
Power Plant

200
Jul. 19

Aug. 19

Sep. 19

Oct. 19

Nov. 190Dec. 19

S-12 CS Kannami-cho
Power Plant

(MWh)
300

(MWh)
200

200
100
100
0

S-13 CS Mashiki-machi
Power Plant

Jul. 19

Aug. 19

Sep. 19

Oct. 19

Nov. 190Dec. 19

S-14 CS Koriyama-shi
Power Plant

(MWh)
6,000

(MWh)

100
75

4,000

50

2,000
0

25
Jul. 19

Aug. 19

Sep. 19

Oct. 19

Nov. 19

Dec. 19

0

5

Portfolio Performance
S-15 CS Tsuyama-shi
Power Plant(MWh)

S-16 CS Ena-shi
Power Plant

300
200

S-17 CS Daisen-choPower Plant (A&B)

300
200

100
0

(MWh)

100
Jul. 19

Aug. 19

Sep. 19

Oct. 19

Nov. 19

Dec. 19

0

S-18 CS Takayama-shi
Power Plant

(MWh)

4,000

Jul. 19

Aug. 19

Sep. 19

Oct. 19

Nov. 19

Dec. 19

Jul. 19

Aug. 19

Sep. 19

Oct. 19

Nov. 19

Dec. 19

Jul. 19

Aug. 19

Sep. 19

Oct. 19

Nov. 19

Dec. 19

(MWh)
150

3,000
100

2,000

50

1,000
0

S-19 CS Misato-machi
Power Plant

Aug. 19

Sep. 19

Oct. 19

Nov. 190Dec. 19(MWh)

S-20 CS Marumori-machi
Power Plant

150

(MWh)
300

100

200

50

100

0

S-21 CS Izu-shi
Power Plant

Jul. 19

Jul. 19

Aug. 19

Sep. 19

Oct. 19

Nov. 19

Dec. 19

Jul. 19

Aug. 19

Sep. 19

Oct. 19

Nov. 19

Dec. 19

0

(MWh)
800
600
400
200
0

6

2. Major Topics for 5 th FP /Summary of Portfolio and Debt

7

Newly Acquired Assets in 5 th FP
S-21

CS Izu-shi Power Plant (Acquisition date : November 29, 2019)

Project NameCS Izu-shi Power Plant

Land

Area

337,160㎡

Acquisition Date

November 29, 2019Land Rights

Surface rights

Acquisition Price¥4,569,000,000

COD

November 30, 2018

LocationIzu-shi, Shizuoka

FIT
Expiration

November 29, 2038

Operator

Canadian Solar Projects K.K.

Panel Type

Polycrystalline Silicon

O&M Servicer

CSOM Japan

Panel output

10,776.8kW

EPC Servicer

ETS Holdings Co., Ltd.

Output capacity

8,160kW

Panel
Manufacturer

Canadian Solar Group

Inverter manufacturer

Huawei Technologies Co., Ltd.

Frame Structure

Screw foundation

First year projected capacity
factor

13.11%

Summaryof SpecificContracts

Power Generation
Company
Electric Power
Purchasing
Company
Purchase
Price

LOHAS CLEAN ENERGIES WORLD K.K.
TEPCO Power Grid, Inc.
¥36/kWh

Facility8

AUM Snapshot◼ Acquiring CS Izu-shi Power Plant, the fund has 21 power plants with total panel output of 120 MW
and the total acquisition price is close to ¥50Bn. AUM on mark-to-market basis is exceeding ¥50Bn.
<Portfolio as of the end of 4th FP><Asset acquired during 5th FP><Portfolio as of the end of 5th FP>

20 projects# of projects

1 project# of projects

21 projects

Total acquisition
price¥44.28 Bn

Acquisition price¥4.56 Bn

Total acquisition
price¥48.84 Bn

Total valuation
price (Note)¥50.02 Bn

Valuation price asof acquisition (Note)¥4.61 Bn

Total valuation
price (Note)¥51.49 Bn

Panel output of
AUM

108.9 MW

Panel output of
acquired asset

10.7 MW

Panel output of
AUM

119.7 MW# of projects(Note) “Valuation price” refers to the median project valuation report amount which is the estimated values provided to us by Pricewaterhouse Coopers Sustainability LLC and
Ernst & Young Transaction Advisory Services Co., Ltd. in its project valuation reports as at each end of FP or acquisition.

◼ Historical panel output of AUM◼ Historical acquisition price and valuation price

140

55

120

3.2

100

30.3

80

2.5

60
40

10.7

72.7

10.7
3.2
30.3
2.5

50

72.7

35

20

(MW)

@ IPO

Acquired Acquired Acquired Acquiredin 2nd FP in 3rd FP in 4th FP in 5th FP

Total

Acquisition price
50.02
47.09

45

42.96

51.49
48.84

44.28

40

30

0

Valuation price

33.86
30.44
@ IPO

35.96
31.43
2nd FP

3rd FP

4th FP

5th FP

9

Portfolio◼ As at period-ended December 2019S-01 CS Shibushi-shi
Power Plant 1.2MW

S-02 CS Isa-shi
Power Plant 0.9MW

S-03 CS Kasama-shi
Power Plant 2.1MW

S-04 CS Isa-shi Dai-niPower Plant 2.0MW

S-05 CS Yusui-cho
Power Plant 1.7MW

S-06 CS Isa-shi Dai-sanPower Plant 2.2MW

S-07 CS Kasama-shi Dai-niPower Plant 2.1MW

S-08 CS Hiji-machi
Power Plant 2.6MW

S-09 CS Ashikita-machi
Power Plant 2.3MW

S-10 CS Minami Shimabara-shi
Power Plant (East & West) 3.9MW

S-11 CS Minano-machi
Power Plant 2.4MW

S-12 CS Kannami-cho
Power Plant 1.3MW

S-13 CS Mashiki-machi
Power Plant 47.7MW

S-14 CS Koriyama-shi
Power Plant 0.6MW

S-15 CS Tsuyama-shi
Power Plant 2.0MW

S-17 CS Daisen-choPower Plant (A&B) 27.3MW

S-18 CS Takayama-shi
Power Plant 1.0MW

S-19 CS Misato-machi
Power Plant 1.1MW

S-20 CS Marumori-machi
Power Plant 2.2MW

S-21 CS Izu-shi
Power Plant 10.7MW

S-16 CS Ena-shi
Power Plant 2.1MW

10

Asset List (1) – Power Plant Data, Valuation and etc.
Land Rights

Acquisition Price(millionyen)Sep. 16, 2034

Ownership

540

563

1.09

1,224.00

Jun. 8, 2035

Lease-hold

372

368

0.72

931.77

Oct. 31, 2017

Jun. 25, 2035

Ownership/Easement

907

1,044

2.03

2,127.84

Oct. 31, 2017

Jun. 28, 2035

Lease-hold

778

766

1.49

2,013.99

36

Oct. 31, 2017

Aug. 20, 2035

Lease-hold

670

660

1.28

1,749.30

40

Oct. 31, 2017

Sep. 15, 2035

Lease-hold

949

943

1.83

2,225.08

Kasama-shi, Ibaraki

40

Oct. 31, 2017

Sep. 23, 2035

Lease-hold

850

889

1.73

2,103.75

Hayami-gun, Oita

36

Oct. 31, 2017

Oct. 12, 2035

Lease-hold

1,029

1,012

1.97

2,574.99

CS Ashikita-machi Power Plant

Ashikita-gun, Kumamoto

40

Oct. 31, 2017

Dec. 10, 2035

Lease-hold

989

991

1.93

2,347.80

S-10

CS Minamishimabara-shi Power Plant(East & West)

Shimabara-shi, Nagasaki

40

Oct. 31, 2017

Dec. 24, 2035 (E)Jan. 28, 2036 (W)Lease-hold

1,733

1,800

3.50

3,928.86

S-11

CS Minano-machi Power Plant

Chichibu-gun, Saitama

32

Oct. 31, 2017

Dec. 6, 2036

Ownership

1,018

1,137

2.21

2,448.60

S-12

CS Kannami-cho Power Plant

Tagata-gun, Shizuoka

36

Oct. 31, 2017

Mar. 2, 2037

Surface rights

514

571

1.11

1,336.32

S-13

CS Mashiki-machi Power Plant

Kamimashiki-gun,
Kumamoto

36

Oct. 31, 2017

Jun. 1, 2037

Ownership/Easement

20,084

21,73242.20

47,692.62

S-14

CS Koriyama-shi Power Plant

Koriyama-shi, Fukushima

32

Feb. 1, 2018

Sep. 15, 2036

Ownership/Easement

246

262

0.51

636.00S-15

CS Tsuyama-shi Power Plant

Tsuyama-shi, Okayama

32

Feb. 1, 2018

Jun. 29, 2037

Ownership

746

796

1.55

1,963.00

S-16

CS Ena-shi Power Plant

Ena-shi, Gifu

32

Sep. 6, 2018

Sep. 12, 2037

Surface rights

757

834

1.62

2,124.20

S-17

CS Daisen-cho Power Plant (A) (B)Saihaku-gun, Tottori

10,447

10,80920.99

27,302.40

S-18

CS Takayama-shi Power Plant

S-19

Location

FIT
Price
(yen)

Acquisition Date

FIT Expiration

CS Shibushi-shi Power Plant

Shibushi-shi, Kagoshima

40

Oct. 31, 2017

CS Isa-shi Power Plant

Isa-shi, Kagoshima

40

Oct. 31, 2017

S-03

CS Kasama-shi Power Plant

Kasama-shi, Ibaraki

40

S-04

CS Isa-shi Dai-ni Power Plant

Isa-shi, Kagoshima

36

S-05

CS Yusui-cho Power Plant

Aira-gun, Kagoshima

S-06

CS Isa-shi Dai-san Power Plant

Isa-shi, Kagoshima

S-07

CS Kasama-shi Dai-ni Power Plant

S-08

CS Hiji-machi Power Plant

S-09

No.

Project name

S-01
S-02

Valuation
Price
Panel
Portfolio %(million
Output (kW)yen) (Note)40

Sep. 6, 2018

Aug. 9, 2037

Surface rights/Leasehold/Easement

Takayama-shi, Gifu

32

Sep. 6, 2018

Oct. 9, 2037

Ownership/Easement

326

342

0.66

962.28CS Misato-machi Power Plant

Kodama-gun, Saitamaken

32

Mar. 1, 2019

Mar. 26, 2037

Ownership

470

478

0.93

1,082.00

S-20

CS Marumori-machi Power Plant

Igu-gun, Miyagi

36

Mar. 29, 2019

Jul. 12, 2038

Surface rights/Easement

850

848

1.65

2,194.50

S-21

CS Izu-shi Power Plant

Izu-shi, Shizuoka

36

Nov. 29, 2019Nov. 29, 2038

Surface rights

Total(Note)

4,569

4,647

9.02

10,776.80

48,84451,498100.00119,746.10“Price” refers to the median project valuation report amount, which is the estimated values provided to us by PricewaterhouseCoopers Sustainability LLC and Ernst & Young
Transaction Advisory Services Co., Ltd. in its project valuation reports as of December 31, 2019.

11

Asset List (2) – Operational Result for 5 th FP(in thousand yen)No.

Project name

Basic Rent

Variable Rent andOther Revenues

Rental Expenses(incl. depreciation
expenses)

Depreciation
Expenses

Net Operating
Income after
Depreciation
Expenses

S-01

CS Shibushi-shi Power Plant

19,137

6,288

14,023

9,472

11,402

S-02

CS Isa-shi Power Plant

14,171

5,230

12,170

7,837

7,232

S-03

CS Kasama-shi Power Plant

29,39910,842

21,51014,462

18,731S-04

CS Isa-shi Dai-ni Power Plant

29,263

9,522

24,92016,457

13,864S-05

CS Yusui-cho Power Plant

23,476

8,425

21,972

14,260

9,928

S-06

CS Isa-shi Dai-san Power Plant

34,851

11,72829,753

19,79916,826

S-07

CS Kasama-shi Dai-ni Power Plant

29,013

9,415

27,514

17,604

10,914

S-08

CS Hiji-machi Power Plant

37,482

10,94332,78322,07015,643

S-09

CS Ashikita-machi Power Plant

37,113

11,37130,973

20,216

17,511

S-10

CS Minamishimabara-shi Power Plant (East & West)65,521

20,782

53,94335,22432,360S-11

CS Minano-machi Power Plant

30,6882,722

24,293

16,132

9,117

S-12

CS Kannami-cho Power Plant

18,456

5,304

16,036

9,662

7,724

S-13

CS Mashiki-machi Power Plant

688,283

232,965

510,027

344,350

411,221

S-14

CS Koriyama-shi Power Plant

7,580

3,320

7,077

4,191

3,823

S-15

CS Tsuyama-shi Power Plant

22,141

12,48519,82912,94914,797

S-16

CS Ena-shi Power Plant

25,611

12,203

22,862

14,51014,953

S-17

CS Daisen-cho Power Plant (A) (B)

385,926

121,853

328,404

214,565

179,375

S-18

CS Takayama-shi Power Plant

9,720

4,625

8,895

5,496

5,450

S-19

CS Misato-machi Power Plant

13,005

5,628

9,824

7,594

8,809

S-20

CS Marumori-machi Power Plant

28,3306,694

25,457

17,036

9,567

S-21

CS Izu-shi Power Plant

17,832

8,750

19,52815,742

7,053

1,567,010

521,106

1,261,805

839,638

826,311Total

12

Credit Rating and the 1st Investment Corporation Bond
◼ Rating obtained during the 5 th fiscal period
Rating Agency

Subject to Rating

Rating Date

RatingOutlookJapan Credit
Rating Agency,
Ltd.

Long-term Issuer Rating

Sep. 6, 2019

A-

StableThe 1st Unsecured Investment Corporation Bond
(only for Qualified Institutional Investors)

Nov. 6, 2019

A--

◼ The 1st investment corporation bond (private placement only for qualified
institutional investors) which is also the 1st bond among the listed infrastructureInterest
fundsIssue Date
Total Amount
Term
Underwriter
Rate

2019年11月6日

JPY1.1Bn

0.71%

5 years

Mizuho Securities Co., Ltd.

JPY 820million has been used for repayment of borrowing due on Feb. 2021 andthe remaining proceeds will be utilized for future acquisition of specified assets.
◼ As the new source of financing, investment corporation bond brings diversification offinancing in the future in addition to borrowings from banks.
◼ Expecting continuous demands from investors, the fund’s stable financial foundation will
be achieved by taking advantage of bond issuance with keeping LTV, DSCR etc. within the
comfortable range.

13

Debt Profile (1)Category

Loan

Type

Initial amount(yen millions)

Outstanding(yen millions)Interest rate

Interest
rate type

Drawdown
date

Maturity

Longterm

15,70014,004

Base rate plus 0.45%(fixed at 0.845% upon executinginterest rate swap)

Fixed

31-Oct-2017

10 years from drawdown date
JCR Green Finance Evaluation

Longterm

8,000

7,408

Base rate plus 0.45%(fixed at 1.042% upon executinginterest rate swap)

Fixed

6-Sep-2018

10 years from drawdown date

Longterm

700

662

Base rate plus 0.45%

Variable

29-Mar-2019

3 years from drawdown date

Longterm

4,500

4,500

Base rate plus 0.45%

Variable29-Nov-2019

2 years from drawdown date

Longterm

300

300

Sub total of Loan

29,20026,873Longterm

1,100

1,100

Sub total of Bond

1,100

1,100

Total

30,30027,973

Bond

Base rate plus 0.20%

Variable29-Nov-2019

Earlier of (i) November 29, 2021
or (ii) first interest payment dateafter the consumption tax refund
date

0.71%

Fixed

6-Nov-2019

5 years from issuance date14

Debt Profile (2) – Lender Formation◼ Financial soundness attributed to fixed interest rate conversion. Although LTV has
risen due to acquisition and revaluation, LTV level is under stable controls.
◼ LTV and ratio of fixed-to-variable rate loans
LTV (Note1)

Fixed-to-variable interest rate ratio (Note2)

as at end of June 2019as at end of December 2019as at end of June 2019as at end of December 201947.00 %

53.74 %

93.61 %

80.48 %

(Note1) “LTV” are calculated without consumption tax bridge loan.
(Note2) “Fixed-to-variable interest rate ratio” refers to the ratio of fixed interest rate liabilities to total interest-bearing liabilities at that time.
Variable interest rate liabilities that were converted to fixed interest rate liabilities through interest rate swap agreements were deemed as fixed interest rate liabilities.

◼ Support by the stable lenders’ formation with Shinsei Bankand mega banks as the arranger and co-arranger◼ Historical LTV
56.00%
54.00%
52.00%

53.74%

51.58%

50.00%

Ashikaga
Bank

ResonaBank
SMBC

49.78%Mie Bank

48.00%

44.67%

44.00%MUFG

Orix Bank

ShinseiBank

47.00%

46.00%

Oita Bank

Hiroshima
Bank

ShonaiBank

MizuhoBank

42.00%
40.00%@ IPO

2nd FP

3rd FP

4th FP

5th FP

Nanto
Bank

Tochigi
Bank

15

Green Finance◼ Acquisition of JCR’s Green Finance Evaluation
Borrowings executed on October 31, 2017 were assigned the highest-grade evaluation of “Green 1” inJapan Credit Rating Agency (JCR) ’s Green Finance Evaluation on November 22, 2017. JCR reviewed
Green Finance Evaluation on February 13, 2020 and continued the same "Green1" evaluation.

Acquisition priceof 13 projects
acquired in IPO
JPY 30.4 Bn

CS Mashiki-machi
Power Plant

Borrowings
JPY 15.7 Bn

Unitholders’equityissued on IPOBankJCR assigned
the highest-grade evaluation
Green1in JCR’s Green Finance Evaluation

16

Impact of Curtailment by Kyushu Electric Power (1)◼ Number of past cases of curtailment and estimated impacts
located in Kyushu)
FP

No. of days of No. of implementation at
implementation
CSIF power plants(9 out of 21 portfolio assets are

Estimated rent income
decrease

Ratio of estimated rent
income decrease to rent
income forecast

3 rd

8

12

¥3,833 thousand

0.21%

4 th

48

117

¥32,545 thousand

1.54%

5 th

13

21

¥3,750 thousand

0.17%◼ Kyushu Electric Power commenced curtailment in October 2018 in the 3 rd FP.
◼ In the 4 th FP, despite the high frequency of curtailment from March to May, actual power generation
exceeded forecasted amounts. Hence, impact to CSIF’s performance was limited.
◼ In the 4 th FP, no curtailments occurred after May 13 because inspections at the nuclear power
plants commenced, and electric power demand rises in summer. In the 5 th FP, the CSIF’s facilities
were again subject to curtailment from October 13, 2019, but the impact remained limited for the
FP. In the foreseeable future, the curtailment will have minor impacts in view of ongoing regularinspections of the nuclear power plants, measures against terrorist attacks and the expansion of theportfolio. Monitoring the situation will be continued.
17

Impact of Curtailment by Kyushu Electric Power (2)◼ Outlook of curtailment in the 6th period••

During the 5th period, the number of curtailment decreased, and accordingly, the ratio of Canadian Solar’s lost variable rent income to total
portfolio rent income forecast due to curtailment was down to 0.17%. This decrease is mainly due to periodic inspections on four nuclear power
plants in Kyushu Electric Power's service areas and the suspension of power generation during inspection periods (approx. two months each) at
nuclear power plants
In the 6th period, periodic inspections are scheduled for two nuclear power plants in Kyushu Electric Power's service areas. However, eachinspection period is expected to be prolonged as anti-terrorism measures will be implemented at the next periodic inspection period. As such, it ishighly likely that the frequency of curtailment will be limited due to shrinking operation of nuclear power plants in the service areas of Kyushu
Electric Power during the 6th period

Ratio of the total lost variable rent revenues due to curtailment to the total portfolio rent income
4th FP(ended June 2019)

Nuclear power generation during
inspection period*

5th FP(ended December 2019)1.54 %

0.17

Comparable expenditure of anti-terror
upgrades by power company#

Sendai-2
Sendai-1
Genkai-4
Genkai-3

Name

Jan. 2013

Jun. 2019

1 KEPCO¥285 Bn¥1.25 Trn

2 Kyushu¥200 Bnover ¥900 Bn

2,500

3 TEPCO HD¥70 Bn¥680 Bn

2,000

4 Chugoku¥50 Bn¥500 Bn

5 Chubu¥150 Bn¥400 Bn

6 Tohoku¥25 Bn¥340 Bn

7 Hokkaido

over ¥60 Bn¥200 Bn

8 Shikoku

Tens of billions¥190 Bnof yen9 Hokuriku¥25 Bn

(GWh)
3,500

%

3,000

1,500
1,000
500
0
Jan.
2019年
19
1月

Feb.
19
2月

Mar.
19
3月

Apr.
19
4月

May
19
5月
Genkai-3

Inspection Period(May 13, 2019
~July 22, 2019)

Jun.
19
6月

Jul.
19
7月

Aug.
19
8月

Sendai-1
Inspection Period(July 27, 2019
~October 5, 2019)

Sep.
19
9月

Oct.
19
10月

Genkai-4
Inspection Period(August 16, 2019
~October 24, 2019)

Nov.
19
11月

Dec.
19
12月

Jan.
2020年
20
1月

Sendai-2
Inspection Period(October 18, 2019
~December 26, 2019)

Feb.
20
2月

Mar.
20
3月

Apr.
20
4月

Sendai-1
Inspection
Planed Period(March 16, 2020~
December 26, 2020

May
20
5月

Jun.
20
6月

Sendai-2
Inspection
Planed Period(May 20, 2020~
January 26, 2021)

over ¥150 Bn

Source: Nuclear Regulation Authority website andNikkei Newspaper article dated July 9, 2019.

Source: Nuclear Regulation Authority website, Kyushu Electric Power Co., inc. website, and Presentation materials for IR meeting(November 13, 2019) by Kyushu Electric Power Co., inc.
*: Amount of power generation from each plant after January 2020 is based on a monthly average of actual output during October to December. A monthly average of actual output
during August to September was used to calculate Sendai-1’s output since it’s been offline as of Oct. 18. For Sendai Power Plants No.1 and No.2, estimated power generation in themonth in which the periodic inspection is scheduled to start is divided by the number of days in the month and then multiplied by the number of days from the beginning of the monthto the day before the start date of the periodic inspection

18

Recent System Trends◼ CSIF has been making active contributions to system development related to renewable energy.
◼ CSIF will endeavor to disclose information proactively and take appropriate action with regard tosystem changes.
Basic charges on the power generation side

Accumulation of funds for removal

Objective

Renewable energy power generators are to pay the
charges for maintaining and managing the power gridin proportion to their respective power generationlevels.

Renewable energy power generators are to beinstitutionally obliged to accumulate funds for covering
the estimated required cost of removing power
generation facilities following the end of the FIT period.

Power generators’
opinions about thesystems

The system should be introduced in combination withthe easing of initial burdens on the generators. Someadjustment measures should be implemented for FITelectricity suppliers to whom the FIT rate during the
profit consideration period applies.

Investment funds think that the system must be properly
designed to permit accumulation matched with the actual
situations, given that facility owners are not identical topower generation operators.

Past deliberations(as of Jan. 31, 2020)

While there was concern in August 2019 that noThe working group on securing funds for disposal andadjustment measure would be introduced for those inother aspects of solar power generation facilities
the profit consideration period (with the FIT rate of 29
discussed the methods of accumulation (e.g. external or
yen or more), the Procurement Price Calculationinternal accumulation) and the level of the amounts andCommittee made deliberations in favor of instituting
called for public comments until the deadline of Jan. 24.
some action for adjustment.

Future direction

Some adjustment measures will be created andintroduced in 2023, given that there is a consensus
among renewable energy power generators that real The system will be introduced in 2022 after continuously
investigating the issues mentioned above.
changes in FIT rates are inappropriate and that ex
post facto revision would pose a risk of impairing thereliability of the systems concerning renewable energy.

19

Contribution to ESG◼ Signatory to UN PRI (United Nations-backed Principles for Responsible Investment Initiative)
As at Aug. 13, 2019, our asset manager, Canadian Solar Asset Management K.K. (“CSAM”), has become a signatory to the UN PRI.
CSAM intends to increase its activities for more progress with regards to ESG issues and commits responsible investment management
through the practice of PRI in order to accomplish contributions to social responsibility.

◼ The Canadian Solar Group’s relationship with the local community around S-17 CS Daisen-choCanadian Solar Project K.K., the sponsor of the CSIF, constructed theDaisen Canadian Garden and donated it to the Daisen-cho Town
Government in commemoration of the completion of S-17 CS Daisencho Power Plant, now owned by the CSIF after development, and as
part of its contribution to local communities under the concept of an
ambitious attempt for harmony between nature and large-scale solar
power plant. In addition, it repaired the Hima Jinja Shrine in thesame town and donated an incense holder made of white granite to
the Shimpukuji Temple.

In the Daisen Canadian Garden, there is a work created in the
motif of the magnificent local mountain, Mt. Daisen.

◼ Consolatory donation to the Marumori-machi Town Government
in Igu-gun, Miyagi Prefecture (S-20 CS Marumorimachi)
Canadian Solar Project K.K., the sponsor of the CSIF, and Canadian Solar AssetManagement K.K., as the asset management company, offered consolatory
donations to the Marumori-machi Town Government. The town was severely hit
by Typhoon Hagibis in October 2019.

20

3. Management Policy

21

6 th, 7 th & 8 th FP Business Forecast◼ Business Forecast
6th Fiscal Period(ending June 2020)

7th Fiscal Period(ending December 2020)

8th Fiscal Period(ending June 2021)

Statement of Income (million yen)
Operating revenue

2,352

2,405

2,340

Operating profit

814

862

824

Ordinary profit

656

706

673

Current net profit

655

705

672

DPU (incl. distributions in excess of earnings)

3,700 yen

3,700 yen

3,700 yen

DPU (excl. distributions in excess of earnings)

2,837 yen

3,052 yen

2,909 yen

863 yen

648 yen791 yenPer unit distributions in excess of earnings

Congruent with CSIF’s policy to maintain stable levels of distributions, projected DPU for 6 th
FP (ending Jun. 2020) , 7 th FP (ending Dec. 2020) and 8 th FP (ending Jun. 2021) is ¥3,700(Note-1) Figures are rounded down to the nearest million yen.
(Note-2) Above forecasts are based on earnings summary dated February 13, 2020 and is subject to change due to factors including without limitation, acquisition or sale of renewableenergy projects, changes in infrastructure markets, fluctuation in interest rates and other changes in circumstances surrounding CSIF. Forecasts do not guarantee any
dividend amounts.

22

Historical and Forecasted Dividend◼ CSIF has maintained 3,650 yen DPU for the 5 th fiscal period as forecasted◼ Based on full-FP contribution by the acquired power plant in the 5 th FP, DPU of 3,700 yen is
forecasted for the 6 th ~ 8 th FP which is 50 yen increase from the 5th FP◼ The fund aims to achieve a stable and sustainable distribution payout by utilizing distributions inexcess of earnings
(yen)

4,000

3,600

3,500

3,650

3,650

577

3,000

3,700
863

3,700

3,700

648

791

3,052

2,909

7th Fiscal
Period
第7期(Forecast)

8th Fiscal
Period
第8期(Forecast)

1,340

2,500

2,350

2,000

808

1,817

3,073

1,500

2,837
2,310

1,000
1,542

1,783

500
0
2nd 第2期
Fiscal Period

3rd Fiscal
Period
第3期

4th Fiscal
Period
第4期

5th Fiscal
第5期Period

6th Fiscal
Period
第6期(Forecast)（予想）

1口当たり分配金（利益超過分配金を含まない）

（予想）

（予想）

1口当たり利益超過分配金(Note) Figures for the 6th~8th Fiscal Period are forecasts and are subject to change. They do not represent guaranteed distribution amounts.

23

External Growth Strategy（Sponsor Pipeline）(the numbers are as of the end of Dec. 2019)◼ Achieve ¥100Bn in asset size within 2 years by mainly acquiring assets from sponsor pipeline◼ Sponsor portfolio snapshot
FIT purchase price range: Mostly ¥32~¥40/kWh
Fully taking advantage of vertically-integrated model,
actively develop new projects with lower FIT priceOperational and underconstruction

15projects, 156.9MW

15.7%

50MW~

8
2
8

10MW~50MW

25.5%

5MW~10MW

0.8%
3.8%

2MW~5MW4
8￥36/kWh￥32/kWh￥24/kWh

48.4%

5.8%

~￥20/kWh◼ Operational start year and status ofsponsor portfolio assets◼ Map of owned assets and sponsor assets

Operational

Under construction

400.0
151.5

300.0

Under development
30.0

ENR projects

361.2MWCS Gunma Takasaki KG
PP (24.5 MW)

CS Hiroshima Suzuhari
PP (17.9 MW)

CS Gunma Minakami PP(19.0 MW)CS Hokkaido Ishikari PP(2.4 MW)CS Gunma Minakami
Dai-ni PP (2.6 MW)

CS Miyagi Kejonuma PP(0.9 MW)CS Gunma Aramaki PP(19.0 MW)CS Miyagi Angel Land
PP (9.2 MW)

CS Tochigi Ashikaga PP(2.1 MW)CS Miyagi Ogawara PP(7.2 MW)CS Okayama Shinyubara
PP (30.0 MW)

CS Azuma Kofuji PP(100.0 MW)

CS Yamaguchi Hofu PP(7.0 MW)CS Yamaguchi Aio
Dai-ni PP (1.2 MW)

0.0

34.3

44.4

1.2

CS Tochigi Kitsuregawa
PP (1.2 MW)CS Ibaraki Kurusu PP(11.3 MW)CS Oita Munechika PP(8.2 MW)1.6
21.2

CS Fukuoka Tagawa PP(0.8 MW)CS Oita Hiji PP(53.4 MW)

204.3
200.0

● Operational● Under construction● Under development● Acquired by CSIFCS Shimane Hamada PP(2.0 MW)CS Fukuoka Saigawa PP(13.0 MW)

100.030projects, 361.2MW

ENR projects (Note)
1.8MW￥40/kWh￥21/kWh

~2MW

76.9

15projects, 204.3MW

By FIT price (panel output)

By size (per asset)（MW）

Total sponsor portfolio

Under development

CS Kumamoto Mashiki
Dai-ni PP (1.2 MW)

80.0
76.9
1.8

CS Kumamoto Yamato
PP (1.2 MW)

CS Saitama Kumagaya
PP (2.0 MW)

CS Ibaraki Kasama PP(12. 0 MW)

CS Shizuoka Tashiro
Dai-ni PP (0.4 MW)

CS Higashikagawa PP(2.6 MW)CS Hyogo Kawanishi PP(1.0 MW)CS Higashikagawa
Dai-ni PP (2.1 MW)

CS Hiroshima
Fukuyama PP (3.4 MW)

Source: Compiled by the Asset Manager based on disclosures by Canadian Solar Projects K.K.
Note: Total panel output of ENR projects are based on development plans as of December 31, 2019. Forecasted output and actual output may differ. Licenses and permits for ENR project development may not be completed and there is no assurance
that these projects will reach completion nor be ready for commercial operation. With respect to these ENR projects, CSIF has been granted Exclusive Negotiation Rights from project developers. As at December 31, 2019, the sponsor does notretain ownership of these projects and there is a likelihood that the sponsor will not acquire the project among other reasons. As at December 31, 2019, CSIF does not intend to acquire these projects and there is no assurance that CSIF will
acquire these projects.

24Appendix

25

Overview of Sponsor◼ Canadian Solar Group’s history◼ Canadian Solar Group’s Global Operations

Founded in Ontario, Canada, 2001
Listed on NASDAQ (CSIQ) in 2006

1

5

1
6

2

Over 13,000 employees globally
Presence in 20 countries/territories

Delivered solar panels amounting to over 38 GW total
capacityOver 10 GWp solar power plants build and connected
globally (incl. Recurrent Energy)

3 7
3

1 Canada
2 U.S.
3 Mexico
4 Brazil
5 Germany
6 Spain
7 China
8 South Africa
9 UAE
10 India
11 Singapore
12 Japan
13 Korea
14 Australia

9Entered the Japan market in 2009 and established proventrack record for shipping PV modules

10

12

13

17 18 7
16
5
19
4
11

20 6

2 4
14

8

15
16
17
18
19
20

Italy
VietnamHong Kong
TaiwanThailandIndonesia

1
2
3
4
5
6
7

CanadaBrazilChina
Thailand
VietnamIndonesia
TaiwanAs of Nov. 25, 2019
●Base of sales◆Base of manufacturing

Source: Compiled by the Asset Manager basedon “Investor Presentation as of Dec. 9, 2019”
by Canadian Solar Inc.

The manufacturer of the most “Bankable” (qualified as
lending subject) solar power module（by Bloomberg New Energy Finance 2019 Module Bankability Survey,
Canadian Solar, Inc. disclosed in “Investor Presentation” as of Dec. 9, 2019）15

Canada (2009)

U.S. (2010)(Note) There is no assurance that we can acquire the solar energy projects showed in the above
pictures in the future as of this writing.

26

Vertically-integrated Business Model
GrowthPV plant
Acquire PV
plants

Project owner
CS Mashiki-machi
Power Plant

Own and lease solar
energy projects

Canadian Solar Infrastructure Fund,
Inc.

ProvideO&M
services
PV plant
management

Lease PVfacilities
PV plantdevelopment

Module

Cell

Wafer

Ingot
SiliconCanadian Solar Group (incl. sponsor)

Developer
Canadian Solar Projects K.K.

O&M provider
Canadian Solar O&M Japan K.K.

27

Overall Structure◼ Identical structure as a typical J-REIT◼ Our revenue is derived from rent income of solar energy projects
Canadian Solar Asset Management K.K.
Engaged in asset management in Canadian Solar
Infrastructure Fund, Inc.
⚫ Established in June 2016⚫

Canadian Solar Projects K.K. (Sponsor)(Sponsor / Operator)⚫ Engaged in construction and operation of solar
energy facilities⚫ Established in May 2014

Asset
Management
Agreement

AssetManagerSponsorSupportAgreement

Distributions

Investment
Corporation(Fund)

Provides O&M services to solar energy facilities
including our currently-owned projects⚫ Established in June 2016

Loan
Agreements

Lenders

Sponsor /Operator
O&M Service
Agreement

Solar Energy
Projects
Lease /
Purchase
Agreements

Sales of PV modules for use in residential andindustrial solar power systems⚫ Established in June 2009

Landowners

O&M

Lease / Operation
Agreement

Canadian Solar Japan K.K.
⚫

EquityEquityInterest

Canadian Solar O&M Japan K.K.
⚫

Investors

Asset Management
Service Agreements

LesseeOperator
SPC, etc.

Utilities
PPAs /
Interconnection
Agreements

28

Unit Price Performance◼ Approx. 25% increase in CSIF’s unit price for 2019 (vs 23% for TSE REIT index)◼ Based on steady growth of the portfolio, further rise in unit price is targeted
Unit price at ending of 2019 : 119,300 yen
Forecasted 5th FP DPU : 3,650 yen
DPU yield : 6.1％ (annual)
TSE REIT
index

Unit price(yen)
130,000

Volume (right axis)

Unit price (left axis)

Unit price at beginning of 2019 : 94,400 yen
Forecasted 3rd FP DPU : 3,600 yen
DPU yield : 7.6% (annual)

TSE REIT index (left axis)

4500

2,350

125,000

2,250

120,000

2,150

115,000

2,050

110,000

1,950

105,000

1,850

100,000

1,750

95,0001,650

90,0001,550

85,000500

80,000

0

4000
3500
3000
2500
2000

1500
1000

29

Status of Unitholders◼ Unitholding (as at period-ended December 2019)◼ By unitholders◼ By unitholding amount# ofInvestment
units:
231,190■Individuals / others

130,673units（56.52%）■ Individuals / others

11,117 (97.52%)■Financial institutions

18,680units（ 8.08%）■ Financial institutions

34 ( 0.30%)(incl. financial instruments firms)■Domestic corporates

50,589units（21.88%）■Foreign entities & individuals

31,248units（13.52%）

Name

# of
Unitholders:
11,400人(incl. financial instruments firms)■ Domestic corporates

181 ( 1.59%)■ Foreign entities & individuals

68 ( 0.59%)

Number of investment
units held (units)

Unitholding ratio to total issued
units (％)

1

Canadian Solar Projects K.K.

33,89514.66%

2

State Street Bank And Trust Company

11,944

5.16%

3

The Bank of Fukuoka, Ltd.

3,430

1.48%

4

Goldman Sachs International

3,165

1.36%

5

Individual investor

3,042

1.31%

6

CITIBANK INTERNATIONAL PLC AS STANDARD LIFE WEALTH PHOENIX FUND

2,437

1.05%

7

THE BANK OF NEW YORK

2,420

1.04%

8

Individual investor

2,041

0.88%

9

Individual investor

2,020

0.87%

10 Individual investor

2,000

0.86%

66,39428.71%

Total(Note): Unitholding ratio is rounded down to the nearest hundredth.

30Balance Sheet for 5 th FP◼ 5 th Fiscal Period (ended December 2019)◼ Assets(in thousands of yen)

Cash and bank deposit

2,474,056

Operating accounts receivable

268,927

Prepaid expenses

157,523

Consumption taxes receivable

329,815

Other current assets

860

Total current assets

3,231,182

Fixed assets
1,040,844

Accumulated depreciation(63,543)

Total structures (net)977,300
42,726,985

Accumulated depreciation(3,002,153)

Total machinery and equipment (net)39,724,832

Tools, equipment and supplies

592,249

Accumulated depreciation(43,368)

Total tools, equipment and supplies (net)548,881Land
Total property and equipment

4,469,653
45,720,667

Intangible assets
Leasehold rights
SoftwareTotal intangible assets

753,1392,353
755,492

Investments and other assets
Long-term prepaid expenses

316,119

Deferred tax asset

12

Guarantee deposits

37,790Total investments and other assets
Total fixed assets
Deferred assets
Investment corporation bond issuance cost
Total deferred assets
Total assets

Accounts payable (other)
Long-term borrowings to be repaid within 1
year
Accounts payable
Accrued expenses
Income taxes payable
Consumption taxes payable
Deposits received

Property and equipment

Machinery and equipment(in thousands of yen)

Current liabilities

Current assets

Structures◼ Liabilities and Net Assets

Total current liabilities

32,9881,512,196
67,471102,033
860
8,317
1,562
1,725,429

Fixed liabilities
Investment corporation bondLong-term borrowings
Total fixed liabilities

1,100,000
25,360,810
26,460,810

Total liabilities

28,186,239

Unitholders’ equity
Unitholders’ capital
Amount deducted from Unitholders’capitalUnitholders’ capital (net)
Surplus
Unappropriated retained earnings(accumulated deficit)
Total surplus

22,050,175(700,678)
21,349,496
534,065534,065

Total unitholders’ equity

21,883,561

Total net assets

21,883,561

Total liabilities and net assets

50,069,801

353,92246,830,082
8,536
8,536
50,069,801

31

Statement of Income for 5 th FP◼ 5 th Fiscal Period (ended December 2019)(in thousands of yen)

Operating revenues
Rental revenues

2,088,116

Total operating revenue

2,088,116

Operating expenses
Rental expenses of renewable energy projects

1,261,805

Asset management fee

52,213Administrative service fees

18,542

Director’s compensation

2,400

Tax and dues

772

Other operating expenses

55,412

Total operating expenses

1,391,146

Operating profit

696,970

Non-operating income
Interest income

13

Total non-operating income

13

Non-operating expenses
Interest expenses

107,285

Interest expenses on investment corporation
bond

1,176

Amortization of investment corporation bondissuance expenses

263

Borrowing-related expenses
Total non-operating expenses

53,389162,115

Ordinary income

534,868

Income before income taxes

534,868

Income taxes
Income tax adjustments
Total income taxes
Net income
Profits brought forward
Unappropriated retained earnings(accumulated deficit)

862
0
862
534,005
59

534,065

32

Leasing Structure◼ Calculation method of basic rent and variable rent in anticipated projects to be acquired
Basic rentMonthly projected energy output (P50) ×(100－Y)% × 70% × FIT purchase price

Variable rent(Monthly actual energy output × (100－Y)% × FIT purchase price) － Basic rent

⚫ Even if actual energy output is lower than projected energy output (P50), the operator will be able to receive basic rent from lessee⚫ If actual energy output exceeds 70% of projected energy output (P50), possible to obtain variable rent

◼ Diagram of rent structure
Projected revenue from sales of electricity(before deducting lessee’s operating costs andoperator compensation)
×Y％

Projected energy output (P50)
×FIT purchase price

Rental income of Canadian Solar
Infrastructure Fund, Inc.

Projected energy output (P50)
×FIT purchase price×(100-Y)%
Variable rent

Projected energy output (P50)
×FIT purchase price × X%
×Y％Projected energy output (P50)
×FIT purchase price × X%
×(100-Y)%

Basic rent

Projected energy output(P50)×X%

Projected energy
output (P50)

Note-1: Projected energy output (P50) is monthly predicted solar energy output inlease term as described in technical reportNote-2: Y is percentage based on lessee’s operation cost and operator compensation
Note-3: Negative variable rent is regarded as zero

Actual energy output

33

Distribution Policy (Payout Ratio)◼ Distribution policy focusing on payout ratio⚫ Cash distributions to our unitholders for each fiscal period are calculated by multiplying the residual free cash flow(“NCF”), which refers to free cash flow (“FCF”) minus debt interest payments, by a payout ratio, which is determinedby us for each fiscal period.

◼ Distribution in excess of earnings
Expenses ofleasing business

Expenses ofleasing business

Debt interest

Capital expenditure

Debt interest

Total rental
revenues

FCF made by
renewable energy facilities

Use forreinvestment
Up to 60%of depreciation

Debt repayment

Depreciation

Retained earnings
Residual FCF(NCF)

Revenue

Expenses

Residual FCF
×Payout ratio

Cash distribution

Distribution

Distribution inexcess of earnings
Distribution
from profit

Net income

Breakdown

P/L(Note-1) Residual FCF is calculated as free cash flow minus interest payments related to interest-bearing debt and repayments of interest-bearing debt for the relevant fiscal period plus
total amount of net cash flow remaining after deduction of distributions from the preceding fiscal periods.
(Note-2) Our calculation method of payout ratio differs from that of other enterprises (i.e. cash distribution divided by current income).
(Note-3) Under the standards set forth by the Investment Trusts Association, Japan, closed-end infrastructure funds, such as us, may return capital up to 60% of the amount obtainedby deducting the amount of their accumulated depreciation recorded as of the end of the preceding fiscal period from the amount of their accumulated depreciation calculated
as of the end of the relevant fiscal period.
(Note-4) The chart above is presented solely to facilitate a general understanding of the mechanism for cash distributions, and does not represent the share of our rental revenues orcash distributions in excess of retained earnings. We may decide not to make any amount of cash distributions in excess of retained earnings for a particular fiscal period,
based on a consideration of factors such as economic or renewable energy market conditions or our financial condition, among other factors, after taking into account our
financial situation and alternative uses of cash, such as the execution of repair plans and capital expenditures, the repayment of borrowings and property acquisition
opportunities. We may, in place of making cash distributions in excess of retained earnings, decide to acquire our own units.

34

Characteristics of PV Plant Revenue◼ Forecastability of earning stability on a long-term basis⚫ FIT price and FIT period of our PV plants are binding in accordance with the Feed-in-Tariff system. Moreover, giventhat our assets-under-management are set up so that we can capture basic rent from the lessee, we assume that any
decline in rent income won’t exceed a certain limit.
⚫ Given that expenses on depreciable assets are largely fixed, earnings forecasts can be realistically projected for the

long-term.
◼ Dynamics of PV plant revenue during FIT period○ Assuming that we purchase PV projects and do not purchaseadditional assets nor sell them, fluctuations in operating revenue,
operating expenses and non-operating expenses during the FIT
period will follow the general tendencies listed below. Hence, ourunderstanding is that CSIF’s current income will gradually increaseover the medium to long term during the FIT period.

AmountOperatingexpenses

Operatingrevenues○ Operating revenues generally decrease gradually over the medium tolong term due to expected deterioration of PV modules.

○ Operating expenses generally decrease (mainly composed of taxes
Net income

on depreciable assets that are calculated using the straight-line
method) gradually over the medium to long term, under thepresumption that expenses other than taxes on depreciable assets
are largely fixed (including assumed regular maintenance costs).

○ Amortization payments of loan principal and interest rates that are

Non-operating
expensesTime

partially fixed generally cause non-operating expenses to decrease
gradually over the medium to long term given typical amortization
schedules, as these payments are the primary component of nonoperating expenses.

35

History of CSIF
Date

Event

April 21, 2017

Notification on incorporation of the Investment Corporation by the organizer (Canadian Solar Asset Management K.K.) in
accordance with Article 69, Paragraph 1 of the Investment Trust Law

May 18, 2017

Registration of incorporation of the Investment Corporation in accordance with Article 166 of the Investment Trust Law,
Company Incorporation

May 25, 2017

Application for registration of the Investment Corporation in accordance with Article 188 of the Investment Trust Law

June 9, 2017

Prime Minister's approval of registration of the Investment Corporation in accordance with Article 187 of the Investment
Trust Law (Kanto Regional Finance Bureau Director-General Registration No. 127)

July 11, 2017

Amendment of Articles of Incorporation

October 30, 2017

Listing on Tokyo Stock Exchange (Securities Code:9284)
Acquisition of 13 power plants (AUM: 13 power plants, total acquisition price JPY30.4Bn and total panel output 72.7MW)

February 1, 2018

Acquisition of 2 power plants (AUM: 15 power plants, total acquisition price JPY31.4Bn and total panel output 75.2MW)

September 6, 2018

Follow-on Offering
Acquisition of 3 power plants (AUM: 18 power plants, total acquisition price JPY42.9Bn and total panel output 105.6MW)

March 1, 2019

Acquisition of 1 power plants (AUM: 19 power plants, total acquisition price JPY43.3Bn and total panel output 106.7MW)

March 28, 2019

Amendment of Articles of Incorporation

March 29, 2019

Acquisition of 1 power plants (AUM: 20 power plants, total acquisition price JPY44.2Bn and total panel output 108.9MW)

November 29, 2019

Acquisition of 1 power plants (AUM: 21 power plants, total acquisition price JPY48.8Bn and total panel output 119.7MW)

36

Renewable Energy Market in Japan◼ Renewable energy mix and comparable energy self-sufficiency by country⚫ At the Paris Climate Change Agreement, Japan pledged to reduce CO emissions by 26% (vs. 2013 levels) by 2030
◼ Comparable renewable energy mix (2017)◼ Comparable primary energy self-sufficiency amongst OECD

100%

792.6%

No.1 Norway
No.2 Australia
No.3 Canada

80%

306.0%
173.9%
92.6%

No.5 U.S.
60%

No.11 UK

No.18 France40%

2 2014 :23.3%→2017 :30.5%

2 2014:3.2％→2017:8.1％

20%

68.2%
52.8%

No.22 Germany

36.9%

No.28 Spain

26.7%

No.33 Korea
No.34 Japan
No.35 Luxembourg

16.9%
9.5%
5.3%

2018:11.8%

0%Germany

Spain

U.K.

Renewable Energy(excl. hydropower)
Coal
Natural gas

France

U.S.

Japan

Hydroelectric energy
Petroleum, etc.
Nuclear energy0%Source: Compiled by the Asset Manager based on METI’s “Japan’s ENERGY (2018 EDITION)” dated March 2019.

100%

200%

300%

400%

500%

600%

700%

800%

900%

Source: Compiled by the Asset Manager based on METI’s “Japan’s ENERGY (2018 EDITION)” dated March 2019.
Note: Figures for countries excluding Japan were based on data from “Energy Balances of OECD Countries 2017” by the IEA.
Figuresfor Japan were based on data from “Comprehensive energy statistics of Japan”(April 2019) by METI.

◼ Changes in the energy market⚫ METI projections of future energy mix and medium-long term changes to FIT purchase price◼ Installed solar capacity… METI predicts solar energy◼ Trends in FIT purchase price and average system costs ofwill comprise 7% of total 2030 energy mix

solar energy projects (2012-2018)

(GW)
80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0

(¥/kWh)
50

64.0

Note:

42.2
37.2

46.8

40

36

25

34.1

32

32.4

31.5

30

28.6

(ten thousand
yen/kWh)
50

26.6
25

29
24

21

18
12.98

0
September 2019

Source:FIT Purchase Price (500kW~2,000kW) (Left Axis)
買取価格（500kW以上2,000kW未満）（左軸）10kW以上の太陽光発電設備のシステム費用の平均値（右軸）Average system cost (Right Axis)

2030 Forecast

Compiled by the Asset Manager based on the following: data from METI website, “Long-term Outlook ofEnergy Supply and Demand (July 2015) by METI, “FY2015 Annual Report on Energy (Energy White Paper
2016)” by METI and data from the Federation of Electric Power Companies.
Projection for FY2030 is based on the percentages and installed capacity disclosed in the reports preparedby METI and are not based upon our calculations. There is no guarantee that the projected percentages orcapacity will be realized.

0
2012

2013

2014

2015

2016

2017

2018

2019

Source: Compiled by the Asset Manager based on “Report on Procurement Prices after FY2020 (February 2, 2020)” by METI.
(Note-1) FIT purchase price for each year based on a period from April to March of the following year and excludes
national and local consumption taxes.
(Note-2) Average system costs are based on the calendar year.
(Note-3) The purchase price in 2019 is the weighted average contract price stated in the "Results of the 4th Solar Power Bid(1st half FY 2019)" issued by Green Investment Promotion Organization

37

Disclaimer• This document has been prepared to provide information, and is not for soliciting and inviting investments in orrecommending transaction of certain products. We request investors to make investments with their own
responsibility and judgment.
• This document does not constitute a disclosure document or a management report based on the Financial
Instruments and Exchange Act, the Act on Investment Trusts and Investment Corporations or the listing regulationsof the Tokyo Stock Exchange.
• In addition to information on Canadian Solar Infrastructure Fund, Inc. (the "Investment Corporation"), this document
includes figures, tables and data prepared by Canadian Solar Asset Management K.K. (the "Asset Manager") based ondata/index and other information released by third parties. Analysis, judgment and other views of the Asset Manager
on such information at the time of preparation are also included in this document.
• The information contained in this document is not audited and there is no assurance of the accuracy and certainty ofsuch information. Analysis, judgment and other non-factual views of the Asset Manager represent views of the AssetManager at this point in time. Different views may exist or the Asset Manager may change its views in the future.
• Figures under the same items of other disclosed materials may differ from figures presented in this document due todifference in the rounding of fractions, etc.
• While the Investment Corporation takes reasonable care in the preparation of this document, there may be errors.
Readers are also cautioned that the contents of this document may be corrected or changed without prior notice.
• The Investment Corporation and the Asset Manager assume no responsibility for the accuracy of data, indexes andother information released by third parties.
• This document includes statements regarding future policies, etc. of the Investment Corporation. However, thesestatements do not guarantee said future policies, etc.
• For the convenience of preparing graphs, the dates indicated herein may differ from actual business dates.

38